Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A)Increasing the pay-for-performance sensitivity comes with the added benefit of reducing manager's risk.
• B)Stock and option grants give managers a direct incentive to increase the stock price to make their stock or options as valuable as possible.
• C)By tying compensation to performance,the shareholders effectively give the manager an ownership stake in the firm.
• D)During the 1990s,most companies adopted compensation policies that more directly gave managers an ownership stake by including grants of stock or stock options to executives.

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Definitions:

Social Harmony

The state of peaceful coexistence and cooperation within a society, where conflicts are minimized and collective welfare is prioritized.

Industry Unions

Labor organizations that represent workers across an entire industry or sector, focusing on collective bargaining and rights for all workers within that industry.

General Unions

Labor unions that represent workers from various industries and occupations, as opposed to those focusing on a specific trade or profession.

Political Unions

Unions or labor groups that focus on political advocacy, lobbying, and influencing policy in addition to traditional labor issues.